This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).

Report No. WT 98-13

WIRELESS TELECOMMUNICATIONS ACTION

May 14, 1998

FCC Adopts Third Annual Report to Congress On State of CMRS CompetitionReport Observes that Competition in Mobile Telephony and Other Services Is Healthy

Today, the Commission adopted its Third Annual Commercial Mobile Radio Service
(CMRS) Competition Report (Third Report). Citing to various industry reports, the Third Report
evaluates various CMRS product categories and concludes that progress has been made toward
competition over the past year, particularly in the mobile telephony market. More competition,
the report observes, has meant lower prices, more choices and new cutting edge technologies for
American consumers.

The Third Report evaluates competition from the perspective of the consumer -- a
different approach from prior reports that analyzed competition based on regulatory and legal
definitions of service offerings alone. Specifically, the Third Report considers three established
CMRS product categories known to consumers: mobile telephony, paging/messaging and
dispatch. The following is observed concerning the competitive landscape of these three CMRS
product categories:

Mobile Telephony: In the past year, the mobile telephony market has achieved new highs
in subscribership -- with 55 million subscribers representing 20 percent of the nation's population
subscribing to service at the end of 1997. This represents an increase of over 11 million new
subscribers during 1997. The Third Report finds that mobile telephony is an important engine of
economic growth in the CMRS marketplace. According to the report, the most dramatic
development in mobile telephony has been the entry of new broadband Personal Communications
Services (PCS) and digital Specialized Mobile Radio (SMR) providers into most major markets
across the country. As a result of these new entrants, prices have been falling and service
offerings have become more diverse.

Paging/Messaging: The report observes that the paging and messaging industry is highly
competitive. New and innovative product offerings, such as two-way messaging, voice mail, and
data transmission (e.g, stock quotes and short e-mail messages), are being offered in an expanding
paging/messaging marketplace.

Traditional Dispatch: According to the Third Report, the dispatch industry has seen a
year where the deployment of digital technology has allowed for a greater range of mobile
messaging, mobile data and vehicle location services. In addition, traditional dispatch operators
are now offering more mobile telephony services in addition to traditional dispatch services.

The Third Report will be submitted to Congress as required under Section 332(c)(1)(C) of
the Communications Act.